[Provided by Mirae Asset Global Investments]
[Provided by Mirae Asset Global Investments]

Mirae Asset Global Investments has advised investors to broaden their exposure across the semiconductor value chain to reduce volatility, as swings in memory chip stocks have grown more pronounced.

The firm held an online seminar Thursday on its TIGER ETF official YouTube channel, Smart Tiger, under the theme "Semiconductor Value Chain Diversification and Hyperscalers."

Kim Sang-yul, head of the global ETF management division at Mirae Asset Global Investments, said last month's pullback in semiconductor stocks reflected "the result of a steep run-up in share prices and a decline concentrated in memory chip names, rather than a deterioration in semiconductor industry conditions."

Kim said Samsung Electronics and SK Hynix shares had surged 263 percent and 528 percent, respectively, over the past year, pushing the two stocks' combined share of Kospi market capitalization from 35 percent to 53 percent and amplifying index volatility.

Mirae Asset Global Investments said the recent correction in semiconductor stocks showed a sharp divergence in the scale of declines depending on each company's exposure to memory chips.

From July 24 to July 31, the three major memory chip makers — Samsung Electronics, SK Hynix and Micron — posted an average maximum intraday decline of 25.0 percent based on intraday lows. The three non-memory peers — Nvidia, ASML and TSMC — fell just 9.5 percent over the same period.

The firm noted that even though all companies faced the same trigger — the planned listing of China's CXMT (ChangXin Memory Technologies) — stocks with heavier memory chip exposure suffered steeper corrections.

Kim said the long-term growth trajectory of the semiconductor industry remains intact, citing expectations for higher DRAM contract prices in the third quarter and continued memory market growth through next year.

"The semiconductor growth story is still valid, but there is a need to spread investment beyond memory chips to the broader value chain — including fabless, foundry and equipment companies — to diversify the sources of volatility," Kim said.

Mirae Asset Global Investments proposed two ETFs as strategic responses: the TIGER US Philadelphia Semiconductor NASDAQ ETF, which invests across the semiconductor value chain, and the TIGER US Tech TOP10 INDXX ETF, which targets companies deploying capital in AI.

The TIGER US Philadelphia Semiconductor NASDAQ ETF invests across the core AI data center value chain, spanning fabless, memory chip, equipment and foundry companies. As of July 31, its top holdings were Nvidia (13.1 percent), Broadcom (10.0 percent), Micron (7.8 percent), Applied Materials (5.2 percent), ASML (4.6 percent) and TSMC (4.4 percent).

The TIGER US Tech TOP10 INDXX ETF centers on hyperscalers — the major cloud and technology companies driving AI capital expenditure. The fund allocates 65 percent to AI investors and 32 percent to supply chain companies, covering both sides of the value chain. Key holdings include Nvidia, Alphabet, Apple, Microsoft and Amazon.

"Rather than substituting for each other, the two products are complementary tools that address different phases of the AI cycle," Kim said. "Together they form a combination that maintains a long-term outlook on semiconductor growth while spreading the sources of volatility."


moon@heraldcorp.com